The EP Model has been formulated to manage employees better and bridge the gap between efforts put in by employees and performances delivered. The terminology used to formulate the model are as follows:VR – Value of Reward: The EP Model suggests that the value of reward given to employees should make it worth the effort. Since employees expect rewards at the end of the efforts and once they have delivered the performance, it is imperative that the value of the reward should be of such magnitude that it goads them to put in their best efforts and deliver their best performances.E – Effort: Effort is one of the main pillars of the EP Model. Employees must put in their best efforts to deliver their best performances. The management should see to it that the employee is putting in his/her best efforts and should create a congenial working environment and policies conducive to better efforts, high morale and motivation.SATs: SATs in the EP model ensure that the employees are treated properly and their problems and issues receive proper consideration. This ensures that employees get priority and are not mere variables but actual human resources.P – Performance: Performance is yet another pillar of the EP Model. Performance, in the light of EP Model, is defined to as the successful conversion of efforts. The management should ensure that the efforts put in by employees are converted to performance to the maximum extent. The level of performance is an indicator of successful management, motivation and high morale of employees.ROLE: In order to function better and operate in a synergistic manner it is necessary to understand one’s roles and responsibilities properly and carve out one’s ambit of work properly. This helps in lending focus on the areas where to put the efforts and thereby achieve better performance.ER – Extrinsic Reward: Extrinsic reward from the view point of the firm stands as the achievement of the targets set by the top management.IR – Intrinsic Reward: Intrinsic rewards are those achievements that may not be directly related to the targets of the management but nonetheless are important to the effective functioning of the firm and contribute highly to the achievement of extrinsic targets of the firm. E.g. retention of employeesSatisfaction ER: Satisfaction relates to both the management and the employees and the objective of this model is to keep both the rungs of personnel happy and satisfied.Perception about E-R: Employees must not develop an adverse perception about rewards and thus rewards should be given to well performing employees as soon as they achieve targets.